BHP Posts Blowout Quarter, but Investors Have Already Moved On

By Avi Salzman

BHP Billiton (BHP), the world’s largest miner, posted an 86% year over year jump in earnings. The company also completed a $10 billion repurchase program six months ahead of schedule and recently raised its dividend.

Nonetheless shares fell 0.6% in midday trading.

High prices for iron and other commodities helped boost results. But CEO Marius Klopperssaid on a conference call that those high prices will come back to hit BHP. The company, which both buys and sells commodities, will soon be facing higher prices for things like steel and lubricants, and that could weigh on future results.

The company also sees monetary policy in China and India and European debt concerns as potential headwinds going forward.

“Across the important growth economies of China and India, recent economic data suggests monetary policy is having the intended effect. That said, growth in fixed asset investment in China has remained resilient and is yet to fully reflect the recent policy response,” the company said.

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